Cramer's 'Mad Money' Recap: Bears Losing Momentum (Final)

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NEW YORK ( TheStreet) -- "The bears are pushing back the bulls," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

He said every time the market gets a little bullish momentum, the bears come out in force to spread negative news and knock the bulls back before they can run.

Cramer said the technicals are clearly in charge of these markets, with all of the big money managers watching the charts very closely and acting accordingly. After a month of negativity in August, stocks were poised to run after last week's upward revisions to home sales and a positive "back-to-school" outlook. But the bears were on the offense last week, he said, squashing any meaningful rally.

Cramer said when he looks at the charts, he sees four types of companies, all telling a bullish story.

No.1. Blast-offs. Cramer said these are the market leaders, stocks like Chipotle Mexican Grill ( CMG) and Netflix ( NFLX), stocks that beat the bears, even at their worst.

No. 2. Breakouts. Cramer said these are stocks like the utilities, Progress Energy ( PGN) and Excelon ( EXC) to name a few, along with the tons of other sectors including gold, restaurants and leisure and travel.

No. 3. Bases. Cramer said the bases are stocks that are biding their time, building a base from which to head higher. Auto stocks fit into this group, he said, along with the housing sector and aerospace and the machinery stocks like Caterpillar ( CAT) and Joy Global ( JOYG).

No. 4. Bottoms. Cramer said these are the banks, like Bank of America ( BAC) and JPMorgan Chase ( JPM), two stocks which he owns for his charitable trust, Action Alerts PLUS. These stocks, he said, are forming their bottoms are are also ready to head higher.

Cramer said when it comes to the markets' outlook, he's siding with the bulls. He said the bear may cry wolf for awhile, but with so much positive momentum building, the bears won't be able to keep the markets down for long.

Silver, Gold Plays

In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick over the chart of iShares Silver Trust ( SLV) to see if silver is actually a better investment than gold.

According to the weekly chart, Fitzpatrick noted that the silver ETF has traded sideways for almost a year, but recently broke through its resistance levels. The ETF has also seen consistent support at its 40-week moving average, and with the charts Bollinger bands narrowing, Fitzpatrick sees the silver ETF as a coiled spring ready to head to $24 over the next year.

Turning to the fundamentals, Cramer said he agrees with the charts. Silver is probably the better play, he said, but only after September. Cramer reminded viewers that September has been the best calendar month for gold, as the Indian and Chinese wedding seasons begin. He said over the past 17 years, gold has risen on average 8% in the month of September.

After September, however, Cramer said he'd swap into silver, which unlike gold, see 49% of its production used for industrial applications. "That's exactly what we want in a recovery," he said.

A Good Deal

In an exclusive "Executive Decision" segment, Cramer sat down with Emanuel Chirico, chairman and CEO of Phillips-Van Heusen ( PVH), a retailer that is not worried about a double-dip recession.

Chirico said he's very excited about his company's acquisition of Tommy Hilfiger, a deal which has exceeded expectations. Chirico said Van-Heusen saw value in Hilfiger, and was able to acquire the company for just eight times earnings.

Thanks to the Hilfiger deal, Chirico said Van-Heusen has accelerated its debt repayments, paying down $400 million in debt so far. The company will also recognize $40 million in cost savings during the second half of 2010 and into 2011 thanks to the deal.

When asked about how the company was able to fare so well during the tough times, Chirico said he quickly drew down inventory levels and cut costs, but also positioned the company for the recovery and is reaping the rewards of those decisions now.

Chirico said the consumer has changed in the ailing economy. He said consumers are indeed looking for more value in what they buy, but that doesn't mean they're not willing to still pay for quality.

Cramer said Chirico was a money maker, and continued his buy recommendation on the Phillips-Van Heusen.

Cramer's Economic Stimulus

In his "Eureka Moment" segment, Cramer shared his eight-point plan for curbing uncertainty in the economy and thus encouraging companies to begin hiring. The key, he said, is to provide some stimulus, but without the taxpayers footing the bill.

1. Reinstate the estate tax. Cramer said the estate tax is the most painless form of taxation and would be a huge pickup in revenue for the government.

2. Tax hedge funds. Cramer said this single move could rake in billions.

3. Freeze the Bush tax cuts. Cramer said the timing of these expirations is only hurting us right now.

4. Forget about card check unions until 2013. Cramer said this looming issue is only preventing hiring.

5. Forget about taxing multi-national companies until 2013. Cramer said this too is only creating uncertainty and is ill-timed.

6. Shelve cap and trade. Cramer said Obama needs to abandon cap and trade and simply tell the utility industry it needs to start upgrading all coal plants.

7. Issue 30-year Treasuries. Cramer said the U.S. must seize the opportunity of low rates today and issue enough debt to avoid a liquidity crisis in the future.

8. Bring home the troops in Japan and Germany. "The Cold War is over," said Cramer, adding these bases only cost us money.

Lightning Round

Cramer was bullish on Cree ( CREE), Waste Management ( WM), Apple ( AAPL), Panera Bread ( PNRA) and Network Appliance ( NTAP).

He was bearish on SanDisk ( SNDK).

-- Written by Scott Rutt in Washington D.C.

To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC .

Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, clickhere .

At the time of publication, Cramer was long Bank of America, JPMorgan Chase.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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